Source: Industry, MCMC
Figure 3.7 Key Development in TV Broadcasting – 20 Years
The convergence licensing framework under the CMA created avenues for change in the broadcasting industry. Today, content is delivered over multi-platform.
For example, telecommunications service providers such as TM is offering IPTV services together with voice and broadband. Consumers have more choice of content via hundreds of TV channels available in the market. In short, the broadcasting industry is more vibrant compared to only a few players back then.
Major broadcasters now distribute their content via dedicated access network and offer OTT services. These developments enable broadcasters to increase audience reach.
Figure 3.8 shows the major TV offerings in Malaysia.
67
MAJOR TV OFFERINGS IN MALAYSIA 2018
Service Provider Platform
Core Business
Model Service
Number of Channel(s) Dedicated
Network
OTT
Service Content Broadband Voice
Terrestrial FTA TV
Media Prima
Analogue and DTTB
Yes
Advertising 6
TV AlHijrah
Analogue
and DTTB Advertising 1
Bernama News Channel
DTTB Advertising 1
Satellite TV
ASTRO DTH
Satellite
Pay TV subscription and
free satellite TV service
193 including 75
ASTRO branded channels
IPTV
ASTRO Maxis
IPTV
Fibre
ASTRO
TIME IPTV Fibre
TM unifi TV
Fibre IPTV service
bundled with voice and broadband
109 channels
ADSL
Note 1. DTTB – Digital Terrestrial TV Broadcasting; DTH – Direct to Home 2. TV AlHijrah and Bernama News Channel are government-owned Source: MCMC
Figure 3.8 Major TV Offerings in Malaysia 2018
68
FTA TV
FTA TV service providers across many Asian markets are under pressure, particularly for advertising revenue from digital media22. The competition comes from OTT video providers (iflix, Netflix and Viu) and others such as Google, Amazon and Facebook, which offer digital advertising.
In emerging Asian markets, FTA TV service providers are taking their linear TV offering to mobile and leveraging on the ongoing digital terrestrial switchover. They are exploring new business models supported by converging platforms. It is said that switchover to digital terrestrial can open multiple doors for FTA service providers23. In addition, industry experts believe that these service providers should aim to work with OTT providers on local or unique content, rather than competing directly with them24.
Media Prima is an integrated media group comprising TV stations, print, radio stations, content creation, out-of-home advertising and digital media. The Group maintains its four main TV channels namely TV3, 8TV, ntv7 and TV9, while on DTTB platform, two TV channels have been recently aired namely CJ Wow Shop for home shopping and Drama Sangat on Malay drama series. Additionally, the Group owns tonton, a video streaming portal with more than 8.4 million registered users in 2018.
Media Prima core strategies include investing in more digital content, growing commerce revenue through integrated media and maximising the value of its existing assets. Notably, the Group ranked third in the country in terms of digital reach with 14.3 million unique visitors, behind Google and Facebook25.
In January 2019, Media Prima acquired a 25% stake in Monster Scape Sdn Bhd26, the owner and publisher of Chinese social news portal TanTanNews. The acquisition is expected to strengthen Media Prima position in digital media, in view of high demand for Chinese content.
Making Content More Accessible
In August 2018, Media Prima announced that its tonton service will be offered at no cost, ceasing the subscription video-on-demand (SVOD) model. This is in line with the Group-wide business transformation strategy to increase revenue through innovative advertising such as targeted online audience.
In addition, Media Prima has collaborated with video sharing websites namely YouTube and Dailymotion by democratising their content for wider audience reach across multiple platforms.
The collaboration allows binge watching of favourite shows and targeting advertising for audience who frequently watch video online.
Media Prima indicated that this collaboration could replace tonton as a more efficient content delivery method27. For the record, tonton is Malaysia’s first VOD streaming service. Introduced in 2010, it offers Asian and international dramas, variety shows, films, telemovies, entertainment programmes and live events.
22 OVUM, Asian FTA Broadcasters Are Embracing Modern Technologies To Remain Competitive And Viable, July 2018.
23 Ibid.
24 IBC365, European Broadcasters Unite to Fight FAANG, July 2018.
25 Media Prima, Investor Presentation, Financial & Business Review for the FYE 31 December 2018.
26 Rev Asia Holdings Sdn Bhd is an indirect wholly-owned subsidiary of Media Prima and acquired 25% Stake in TanTanNews.
27 The Edge Markets, Media Prima’s YouTube Tie-up May Replace Tonton, August 2018.
69
MEDIA PRIMA AND YOUTUBE COLLABORATION
Source: Media Prima
Figure 3.9 Media Prima and YouTube Collaboration
Media Prima is using data management platform for its data analytics. This connects to their data warehouse to analyse user data and behaviour across its digital platforms and the data is linked to their omni-channel marketing tool. Media Prima also has several systems in place built on top of Google Cloud Environment28.
Continued Investment in Local and Regional Content
According to Media Prima, its TV networks has a reach of 28 million viewers. In its Group’s mission to keep audience informed and entertained, they have continued to invest in local and regional content. Media Prima indicated that programmes such as dramas and reality shows are costly to produce, hence, they emphasise on managing costs while maintaining overall production quality.
TV3, which is known for its local drama series, has new shows in 2018 such as Vila Ghazara and Leftenan Zana. On reality shows, TV3 features Bintang Bersama Bintang, Da’i Season Six, Mentor Otai and Mentor 7.
Furthermore, football fans can watch local football matches Liga Super, Piala FA and Piala Malaysia via TV9. The station also has a football-related live activity, that is, Pentas Kita Juara, as well as a mobile app (Kita Juara), which coincide with the sports. Media Prima also introduced two Turkish telenovelas on ntv7 titled New Bride and Brave and Beautiful.
28 MCMC questionnaire to licensees on industry performance.
• Increase audience reach
• Better video viewing experience of content across multiple devices
• Better monetisation Unlock the full potential of Media Prima’s content to generate greater revenue
Well known among Malaysian viewers
• Demand for digital content from audience and
advertisers
• Popularity of local content Media Prima
Content
YouTube Platform
Embed YouTube video player across Media Prima platforms
70
Pay TV
Globally, the trends for Pay TV revolve around business transformation including big data analytics on user behaviour to enhance user experience and build new business models to increase ARPU. More service providers are expected to leverage on scale using cloud-based services and improve agility. Hence, they can effectively migrate to IP delivery of content, which improves user experience in meeting consumer demand29.
In Malaysia, the overall Pay TV subscriptions comprising ASTRO and TM Unifi TV has been increasing for the past five years (Figure 3.10).
PAY TV SUBSCRIPTION 2014 – 2018
As at end 2018, the Pay TV subscriptions increased by 8.1% to 7.32 million from 6.77 million in 2017. However, the growth is at a slower pace compared with previous years.In terms of household penetration, it has reached 87.3%, with 7.06 million household subscriptions.
ASTRO has 5.71 million subscriptions as at January 2019, increasing 4% from 5.49 million in the previous year. As at January 2019, ASTRO reported a total of 193 Pay TV channels, while 30 channels can be viewed via NJOI (no monthly subscription).
Source: MCMC
Figure 3.10 Pay TV Subscription 2014 – 2018
ASTRO home shopping segment, Go Shop achieved 1.8 million registered customers (January 2018: 1.3 million), whilst its mobile app, Astro Go, has reached 2.2 million registered users as at January 2019, an increase of 32% from 1.6 million a year ago.